The Department of Petroleum Resources, DPR, has said that key investors who have observed transparency in policy implementation in the midstream sector of Nigeria’s oil industry have signified interest in to invest about $500 million across the sub sectors value chain.
Director of the Department, Sariki Auwalu, who disclosed this while reviewing implementation of the Nigerian gas transportation network code (NGTNC), launched last year, said the investors are considering investments in the domestic gas value chain.
Auwalu said that strict implementation of the NGTNC, has helped to grow Nigeria’s Gas market coverage with a pricing regulations now in place.
During the period of review the DPR has licensed twelve shippers while three applications under processing.
In addition he said the Agency has licensed one transporter and three agent licensees and that has so far increased shipping industry capacity.
Also, the Code has helped to upgrade gas transmission and distribution which is now conducted in global best practice.
He said today Nigeria produces about 8 billion standard cubic feet of gas daily, exporting 3.5 billion standard cubic feet of gas and domestic utilisation now standing at 2,8 billion standard cubic feet of gas daily.
The Director also disclosed that flare put has come down to 8 per cent which he said is a significant milestone.
Auwalu said moving forward the DPR, will intensify collaboration with relevant partners and stakeholders in the oil and gas sector to boost delivery of gas to the domestic market.
Oriental News Nigeria, reports that thenNGTNC was announced in February, but the existing users of the gas network got six months to migrate from existing Gas Transportation Agreements to the network code.
The code is a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for operation and use of the gas network. The code aims to provide open and competitive access to gas transportation infrastructure.
Auwalu, said the framework would help to grow gas infrastructure, expand gas utilisation, curb gas flaring, and provide codes to standardise the gas value chain in line with global best practices.
The NGTNC was part of the key reforms instituted by the President Muhammadu Buhari Administration to expand domestic gas-to-power, gas-to-industry, gas-to-manufacturing and mitigate the challenge associated with gas flaring in the country.
The gas codes would go a long way in deepening economic development, improve gas supply, boost liquefied petroleum gas supply, and attract more investment opportunities in the nation’s gas value chain.